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2021-08-31-accounts

Company registration number: 03053290 Charity registration number: 1046559

Boots Benevolent Fund for the year ended 31 August 2021

Annual report and financial statements

Boots Benevolent Fund

Contents

Strategic report 1
Trustees’ report 3
Statement of Trustees’ responsibilities 6
Independent auditor’s report 7
Statement of financial activities (incorporating the income and expenditure account) 9
Reconciliation of funds 9
Balance sheet 10
Notes to the financial statements 11

Boots Benevolent Fund Strategic report for the year ended 31 August 2021

The Trustees, in preparing this Strategic report, have complied with s414c of the Companies Act 2006.

In accordance with Section 60 of the Companies Act 2006, the Fund is exempt from the requirements of that Act to include "Limited" as part of its name.

The Trustees are also the directors of the Fund for the purposes of the Companies Act 2006. Throughout the financial statements, they will be referred to as Trustees.

Principal activity

The principal activity of Boots Benevolent Fund (the “Fund”) is that of a charity. It provides financial assistance through the giving of grants (in the form of cash or supermarket vouchers) and interest free loans to relieve financial hardship to qualifying employees, former employees and their dependents.

Objectives and activities for the public benefit

The objectives of the Fund are to relieve poverty amongst and provide assistance to employees and their dependents or immediate relatives of qualifying Boots companies within Walgreens Boots Alliance, Inc. or persons or their dependents or immediate relatives who have at any time been employed by qualifying “Boots” companies.

Public benefit

The Trustees have complied with the duty in section 4 and 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The Trustees consider that the charitable purpose of Boots Benevolent Fund is the prevention or relief of poverty. This purpose is pursued through the provision of grants and loans to the benefit of the public.

In the context of the Fund the public is understood to include employees and their dependents or immediate relatives, or persons or their dependents or immediate relatives who have at any time been employed by qualifying “Boots” companies.

Business review and achievements and performance

COVID-19 was declared a global pandemic by the world Health Organisation on 20 March 2020. This outbreak has continued to have a significant impact in the UK. Given the nature of the Trust, the Trustees do not consider there to be any significant impact on the Trust’s operations, nor for the proper understanding of these financial statements.

During the year, the Trustees made awards in line with the Fund’s Giving Criteria and accordingly supported employees, former employees, their dependants or immediate relatives with grants, vouchers and interest free loans, as well as complementary hampers containing Boots products.

Decisions to award grants and interest free loans of up to £1,500 are made by the Fund Manager. Grants in excess of £1,500 are considered by the Grants Committee and require the approval of two Trustees.

During the year, the Fund awarded the following to individuals:

Income in the year was mainly from donations and this along with other fund-raising activities produced income of £380,050 in the year (2020: £227,272).

Employees of Boots were encouraged to sign up for payroll giving, which raised £43,843 in the year (2020: £45,881). This is included within income from donations.

Principal risks and uncertainties

The Trustees have reviewed the strategic, operational and business risks which the Fund faces, and have confirmed that there are sufficient controls to mitigate the significant risks. Periodic ongoing reviews of the Fund’s risks and controls take place to ensure risks will be sufficiently controlled.

The Trustees consider that the principal risks and uncertainties that face Boots Benevolent Fund during the year included:

Insufficient funds

Risk

Insufficient funds are received to enable the Fund to achieve its stated objectives.

Mitigation

The Fund is reliant on income from investments, donations and fundraising activity. The Trustees meet regularly to discuss fundraising plans and opportunities to raise awareness of the Fund. The investments are reviewed on an annual basis with the CCLA investment manager.

Out of policy commitments

Risk

Commitments are made which do not fall within the stated aims of the Fund.

Mitigation

The Fund operates a rigorous process in reviewing grant applications ensuring the Fund’s Giving Criteria is met prior to issuing the grant or interest free loan.

Insufficient awareness

Risk

Insufficient awareness of the Fund does not allow it to reach eligible persons and therefore prevents it achieving its stated objectives.

Mitigation

The Fund undertakes significant work to ensure that all employees are made aware of the Fund through fund raising and awareness raising activities during the year providing guidance on what the Fund does, how to donate and how to access in order to ensure that the Fund continues to meet its stated objectives.

1

Boots Benevolent Fund Strategic report (continued) for the year ended 31 August 2021

Incorrect books and records

Risk

The books and records of the Fund are not properly maintained.

Mitigation

The books and records are maintained by a fully qualified member of a professional accounting body and reviewed regularly.

COVID-19

Risk

The COVID-19 pandemic has created significant volatility, uncertainty and economic disruption. These factors may have an adverse impact on income from donations due to market factors and the ability to host fundraising events along with additional pressures on the Fund as a result of further economic uncertainty. COVID-19 could also impact the market value of investments due to the global decline in some investment markets.

Mitigation

While the Fund has taken numerous steps intended to mitigate the impact of the pandemic, there can be no assurance that such steps will be successful or that the Fund’s operations, results of operations, cash flows and financial position will not be materially and adversely affected by the consequences of the pandemic. The Trustees are focussed on responding to and addressing the impact of COVID-19 including the implementation of alternative fundraising methods and events and the development of strategic partnerships to increase sustainable fundraising. The Trustees will continue to increase awareness of and accessibility to the Fund and continue to review the investments with the investment manager at the CCLA.

The Strategic Report was approved by the Board and signed on its behalf by:

Andrew Thompson (May 27, 2022 16:48 GMT+1)

A Thompson

Company Secretary 27[th] May 2022

2

Boots Benevolent Fund Trustees’ report for the year ended 31 August 2021

The Trustees present their annual report and the audited financial statements for the year ended 31 August 2021.

The Trustees confirm that the Trustees’ Report and the financial statements comply with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Professional advisers
Auditor Deloitte LLP, Statutory Auditor, 1 City Square, Leeds, LS1 2AL, United Kingdom
Bankers National Westminster Bank, 1 City Square, Leeds, LS1 2AL
Investment managers CCLA Investment Management Limited, Senator House, 85 Queen Victoria Street, London,
EC4V 4ET
Registered office & principal office 1 Thane Road West, Nottingham, Nottinghamshire, NG2 3AA
Company registration number 03053290
Charity registration number 1046559

Structure, governance and management

The Fund is a limited company without share capital, limited by guarantee, registered in England and Wales. The liability of a member in the event of the Fund being wound up whilst a member, or within one year of ceasing to be a member, is not to exceed £1. It is registered with the Charity Commission and must comply with the Companies Act 2006 and Charities Act 2011.

The Fund is governed by its Memorandum and Articles of Association which provides for a minimum of 3 Trustees to a maximum of 20 Trustees.

The Chair of Trustees together with the Company Secretary is responsible for the induction of any new Trustees. Trustee induction involves raising awareness of Trustees to their duties and responsibilities under both the Charities Act 2011 and the Companies Act 2006 and emerging regulatory issues as well as an introduction to the governing documents of the Fund and the internal policies adopted. New Trustees receive an Induction Pack in which copies of the following are included:

  1. the Fund’s latest annual report and accounts;

  2. the Fund’s internal governing documents;

  3. the Fund’s Memorandum and Articles of Association; and

  4. the Charity Commission publications ‘The Essential Trustee: What You Need to Know; What You Need to Do’ and ‘The Charity Governance Code.’

Trustees are encouraged to review the latest developments in charity legislation and regulation on the Charity Commission website to maintain their understanding of the role and ensure their effective performance.

Trustees are appointed following recommendation by the Trustees and the consent of the individual proposed. The individual shall then hold office until the next Annual General Meeting where they may be re-appointed. In accordance with the Articles of Association, at each general meeting after the first, one third of the Trustees who are subject to retirement by rotation, shall retire from office and may offer themselves for re-election.

Trustees meet no less than four times a year to agree the broad strategy and areas of activity for the Fund, review financial performance including the management of the funds within an investment and reserves context, consider the efficacy of its internal policies, and review all applications approved under its delegated powers.

The Fund does not have any direct employees. On a day to day basis the Fund is managed by employees of Boots Management Services Limited. These employees include a Fund Manager and Fund Administration staff who are employed by the Human Resources department of Boots Management Services Limited. Fund Administrators are responsible for the initial assessment of applications against the Fund’s Giving Criteria and eligible applications are passed to the Fund Manager and Trustees based on the Fund’s grant award policy. In addition, the Fund Manager, and where applicable with the assistance of H.R., co-ordinates fund-raising activities, promotes the Fund and supports with the provision of management information.

Going concern

The financial statements have been prepared on a going concern basis. In adopting the going concern basis, the Trustees have considered the business activities and principal risks and uncertainties as set out within the Strategic report including the impact of COVID-19.

The Fund generated net income of £168,627 (2020: net expenditure of £30,687). It has net current assets of £528,261 (2020: £359,634) and generated positive cash flows which is expected to continue for a minimum of 12 months from the date the financial statements are signed.

COVID-19 was declared a global pandemic by the World Health Authority on 11 March 2020 and continues after the balance sheet date. Whilst COVID19 has created volatility and uncertainty within the market in which the Company and its investees operate, the Fund has not incurred any significant disruptions nor any adverse impact to its cash flows and has continued to generate positive cash flows throughout the pandemic. The Trustees continue to monitor and respond to the impact of COVID-19 on the Fund and ensure actions are taken as required.

Based on these facts, the Trustees have assessed that there is no material uncertainty surrounding the going concern of the Trust and therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Future developments

The Trustees do not foresee a change in the principal activity of the Fund and expect the general level of activity to remain consistent with 2021. In the forthcoming year the Trustees will continue to increase awareness and accessibility to the Fund and increase sustainable fund raising.

Post balance sheet events

There have been no significant events since the balance sheet date which should be considered for a proper understanding of these financial statements.

3

Boots Benevolent Fund Trustees’ report (continued) for the year ended 31 August 2021

Trustees

The following served as Trustees during the year and subsequently:

S Alimahomed M Carr A Francis S Mody A Penhale A Veldtman N Clements (resigned 31 October 2020) S Trafford (resigned 30 April 2021) E Rabin (resigned 31 May 2021) J Ward (appointed 31 May 2021) E Vargas-Brock (appointed 22 July 2021) K Pitcher (appointed 22 July 2021, resigned 21 December 2021)

Remuneration of Trustees

The Trustees received no remuneration for their services during the year (2020: £nil).

Relationships with related parties

Details of transactions with related parties are set out in note 15 to the financial statements.

Financial review

The Fund is dependent on funding from cash found in Boots stores; fundraising, including staff activities; income from its investments; and donated services from Boots UK Limited and Boots Management Services Limited. This amounted to £408,969 during the year (2020: £257,730). There was a net gain on investment assets of £65,234 (2020: £6,085). Overall the Fund reported a net gain of £233,861 (2020: net loss of £24,602). As a result, total funds have increased 17.8% from £1,310,721 to £1,544,582.

Reserves policy

It is the policy of the Fund to maintain unrestricted funds at a level sufficient to fulfil the likely on-going obligations of the Fund, given the anticipated future income and level of charitable donations. Contingency reserves should be available such that the current level of outgoings can be maintained even if fundraising should decline in any given year.

Shortfall/excess of reserves – In the event that the Fund is holding less reserves than the policy states the Trustees will investigate options for fundraising. Communication and promotion of fundraising will also be increased. In the event that the Fund is holding more reserves than the policy states the Trustees will consider options for increasing outgoings within the following year. These will include:

The Trustees have agreed that twice the level of annual expenditure would be a prudent level of reserves. This has been set as the Trustees have decided that this is a reasonable level to ensure that adequate funds are generated and available to cover future donations to charitable causes. Unrestricted funds at 31 August 2021 were £1,541,427 (2020: £1,307,566) which was 7.3 times (2020: 4.6 times) annual expenditure. The Reserves Policy will be reviewed and adjusted as necessary on an annual basis by the Trustees of the Fund, alongside forecasted fundraising and grants.

The Trustees have agreed that awareness and outgoings are anticipated to increase to align the reserves with the policy above.

Investment policy

The Fund retains its cash reserves in investment funds managed by CCLA. The management of the Boots Benevolent Fund’s funds has an objective to provide reasonable income and growth against inflation. The Trustees are satisfied with the performance of the investments. In accordance with the Trustees’ duties of care and prudence, the funds are managed by an external specialist investment manager on the Trustees’ behalf, through the COIF Charity Funds. The Fund portfolio is made up of assets that include overseas equities, UK equities, property/infrastructure, fixed interest and cash. The performance of the funds is monitored quarterly by the Trustees. The Fund made a net gain in the year of £65,234 (2020: net gain of £6,085) due to a rise (2020: rise) in the capital value of the funds.

References to Strategic Report

Details of the following areas can be found in the Strategic Report and form part of this report by cross-reference:

Auditor

Pursuant to s487 Companies Act 2006, Deloitte LLP were deemed to be reappointed and will therefore continue in office.

4

Boots Benevolent Fund Trustees’ report (continued) for the year ended 31 August 2021

Disclosure of information to auditor

The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant audit information of which the Fund’s auditor is unaware, and each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of relevant audit information and to establish that the Fund’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustee’s Report, including the Strategic Report, were approved by the Board and signed on its behalf by:

J Ward

Trustee 27[th] May 2022

Registered Office: 1 Thane Road West, Nottingham, NG2 3AA

Registered in England and Wales number: 03053290; Charity registration number: 1046559

5

Boots Benevolent Fund Statement of Trustees’ responsibilities for the year ended 31 August 2021

The Trustees, who are also directors of Boots Benevolent Fund for the purposes of Company Law, are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland”.

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

6

Boots Benevolent Fund Independent auditor’s report to the members of Boots Benevolent Fund

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Boots Benevolent Fund (the “charitable company”):

We have audited the financial statements which comprise:

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

7

Boots Benevolent Fund Independent auditor’s report to the members of Boots Benevolent Fund

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the industry and its control environment, and reviewed the documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our specific procedures performed to address it are described below:

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls; tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report included within the trustees’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Anderson

Sarah Anderson (May 27, 2022 17:28 GMT+1)

Sarah Anderson FCCA (Senior statutory auditor)

For and on behalf of Deloitte LLP Statutory Auditor Leeds, United Kingdom

27[th] May 2022

8

Boots Benevolent Fund Statement of financial activities (incorporating the income and expenditure account) for the year ended 31 August 2021

Unrestricted Restricted 2021 2020 Total
funds funds Total funds funds
Notes £ £ £ £
Income from
Donations 3 380,050 - 380,050 227,272
Investments 4 28,919 - 28,919 30,458
Total income 408,969 - 408,969 257,730
Expenditure on
Charitable activities 5 (233,282) - (233,282) (281,523)
Raising funds (7,056) - (7,056) (6,890)
Other (4) - (4) (4)
Total expenditure (240,342) - (240,342) (288,417)
Net income/(expenditure) beforegains on investments 168,627 - 168,627 (30,687)
Other recognised gains
Net unrealised gain on investments 8 65,234 - 65,234 6,085
Net income/(expenditure) for theyear 233,861 - 233,861 (24,602)
Net movement in funds 233,861 - 233,861 (24,602)

The net movement in funds arises from continuing operations and includes all gains and losses recognised in the year.

All income and expenditure in 2021 and 2020 was attributable to unrestricted funds.

The accompanying notes to the financial statements are an integral part of the Fund’s financial statements.

Reconciliation of funds

for the year ended 31 August 2021

2021 2021 2021 2020
Restricted Unrestricted Total Total
£ £ £ £
Total funds brought forward 3,155 1,307,566 1,310,721 1,335,323
Netmovementin fundsforthe year - 233,861 **233,861 ** (24,602)
Total funds carried forward 3,155 1,541,427 1,544,582 1,310,721

The accompanying notes to the financial statements are an integral part of the Fund’s financial statements.

9

Boots Benevolent Fund Balance sheet

as at 31 August 2021

Notes 2021
£
2020
£
Non-current assets
Investments
8		 1,016,321
951,087
Current assets
Debtors
9
Cashat bankandin hand
10		 206,547
97,106
321,714
274,220
Liabilities
Creditors:amountsfalling duewithinone year
11		 528,261
371,326
-
(11,692)
Net current assets 528,261
359,634
Total assets less current liabilities 1,544,582
1,310,721
Net assets 1,544,582
1,310,721
Funds
Restricted income funds
12,13
Unrestrictedincomefunds
13		 3,155
3,155
1,541,427
1,307,566
Total charity funds 1,544,582
1,310,721

The accompanying notes to the financial statements are an integral part of the Fund’s financial statements.

The financial statements for Boots Benevolent Fund (company registration number 03053290, charity registration number 1046559) were approved by the Board of Trustees and authorised for issue on 27[th] May 2022 and were signed on its behalf by:

J Ward

Trustee

10

Boots Benevolent Fund Notes to the financial statements for the year ended 31 August 2021

1. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Fund’s financial statements.

General information

Boots Benevolent Fund (the “Fund”) is a public benefit entity, a registered charity and is incorporated in England and Wales as a company limited by guarantee not having share capital. The address of the registered office is given on page 3. The nature of the Fund’s operations and its principal activities are set out in the Strategic Report on page 1.

Basis of preparation

The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 January 2019; and the Companies Act 2006.

These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Fund operates.

The Company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement

Going concern

The financial statements have been prepared on a going concern basis. In adopting the going concern basis, the Trustees have considered the business activities and principal risks and uncertainties as set out within the Strategic report including the impact of COVID-19.

The Fund generated net income of £168,627 (2020: net expenditure of £30,687). It has net current assets of £528,261 (2020: £359,634) and generated positive cash flows which is expected to continue for a minimum of 12 months from the date the financial statements are signed.

The Trustees continue to monitor and respond to the impact of COVID-19 on the Fund and all available actions have been taken to protect performance. Grants and loans are subject to approval and are only awarded from available funds; the level of grants and loans awarded can be reduced in line with any variability of income from donations.

Based on these facts, the Trustees have assessed that there is no material uncertainty surrounding the going concern of the Trust and therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Income

All income is recognised once the Fund has entitlement to the resources, it is probable that the income will be received and the monetary value can be measured with sufficient reliability. Such voluntary income is accounted for on the date when it becomes receivable, which is when the Fund is entitled to the resource. All income is generated in the United Kingdom.

Income from investments

Income from fixed interest securities is accounted for on the date when it becomes receivable. Other investment income is accounted for on an accruals basis. Interest is shown as gross amounts prior to any tax deduction, which is recoverable.

Donations

Such voluntary income is accounted for on the date when it becomes receivable. Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised - refer to the Trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the year of receipt.

Concessionary loans

Concessionary loans are interest free and measured at the amount received or paid.

Financial instruments

Financial assets and financial liabilities are recognised when the Fund becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

The Fund only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Fund to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category.

Charitable activities

The Trustees consider that the Fund’s activities are the awarding of grants to retired and serving employees experiencing financial hardship. This constitutes all expenditure besides costs of raising funds.

Costs of raising funds

These costs are incurred in relation to marketing.

11

Boots Benevolent Fund Notes to the financial statements (continued) for the year ended 31 August 2021

1. Accounting policies (continued)

Expenditure (continued)

Support and governance cost allocation

Support costs include contributions from Boots UK Limited and Boots Management Services Limited, which is an approximation, based on separately identifiable costs, in respect of managing and administering the Fund. They also include management costs directly incurred by the Fund. Governance costs comprise all costs involving its compliance with constitutional and statutory requirements. These costs include costs related to statutory audit. All support and governance costs are allocated to charitable activities and raising funds on the basis of time spent on the activities.

Grants funded activity

Grants funded activity is payments made to third parties in the furtherance of the charitable objectives of the Fund as stated in the Trustees’ Report.

Investments

Realised and unrealised gains and losses are included in the Statement of Financial Activities. Investments are stated at market value at the balance sheet date and are derived from investment assets in the United Kingdom.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Taxation

The Fund is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

Funding accounting

The Fund has various funds for which it is responsible, which require separate disclosure. These are as follows:

Unrestricted funds

Funds which are expendable at the discretion of the Trustees in furtherance of the objects of the Fund and which have not been designated for other purposes.

Restricted income funds

Donations received which are earmarked by the donor for specific purposes within the overall aims of the Fund. The donation and income deriving from these funds will be used in accordance with the specific purposes. Further detail is given in note 12 of the financial statements.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Fund’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there to be any critical judgements or sources of estimation uncertainty requiring disclosure.

3. Income from donations

2021 2020
£ £
Donations from employees and others 310,901 184,484
Contribution from Boots UK Limited andBootsManagement ServicesLimited (note 6) 69,149 42,788
380,050 227,272

Income from donations relates primarily to fundraising and cash collections by employees in stores. The donations from employees and others includes £43,843 (2020: £45,881) from payroll giving.

4. Investment income

4. Investment income
2021 2020
£ £
Interest received from COIF Charities Investment Account 28,911 30,081
Bank interest 8 377
28,919 30,458

12

Boots Benevolent Fund Notes to the financial statements (continued) for the year ended 31 August 2021

5. Expenditure on charitable activities

The Fund’s expenditure on charitable activities in the 12 months to 31 August 2021 are represented by:

The Fund’s expenditure on charitable activities in the 12 months to 31 August 2021 are represented by:
Grants funded
activity
£
Support and
governance
costs
£		 2021
Total
£
Expenditure on charitable activities
125,909
107,373		 233,282
The 12 months to 31 August 2020 are represented by:
Grants funded
activity
£
Support
costs
£		 2020
Total
£
Expenditure on charitable activities
211,211
70,312		 281,523

6. Analysis of support and governance costs

Support and governance costs included within expenditure on charitable activities of £107,373 (2020: £70,312) relates to costs incurred directly by the Fund of £38,224 (2020: £27,523) and costs incurred by Boots UK limited and Boots Management Services Limited of £69,149 (2020: £42,789).

Included within donations is £69,149 (2020: £42,788) representing a contribution in kind from Boots UK Limited and Boots Management Services Limited, based on separately identifiable costs in respect of managing and administering the Fund.

Costs in relation to the full time Fund Manager have been borne by the Boots Benevolent Fund. The total support costs directly incurred by the Fund for these activities was £41,377 (2020: £27,523) which is included within expenditure on charitable activities.

The audit fee was borne by Boots UK Limited and is included as donated services within expenditure on charitable activities. The open market value is estimated at £5,000 (2020: £5,000). There are no fees payable to the Trust’s auditor for non-audit services (2020: £nil). Governance costs of £5,000 (2020: £5,000) consist of the audit fee.

Trustees’ remuneration and expenses

The Trustees, or any persons connected to them, have not received any remuneration or reimbursement of expenses from the Fund (2020: £nil).

7. Grants funded activity

The following grants were awarded during the year:

The following grants were awarded during the year:
2021 2020
£ £
Miscellaneous grants to retired and serving employees experiencing financial hardship 112,525 174,616
Fixed amount Christmas grants - 500
Supermarketvouchers 13,384 36,095
125,909 211,211

All grants are made to individuals. The Fund also grants interest free loans to Boots employees. During the year 7 loans were granted (2020: 7) amounting to £6,864 (2020: £9,745). Of the loans granted in the year, £6,864 (2020: £3,685) has been repaid.

8. Investments

8. Investments
2020 2020
£ £
COIF Charities Investment Fund
Fair value at beginning of year 951,087 945,002
Net unrealised gainon revaluation 65,234 6,085
Fair value at end ofyear 1,016,321 951,087
Historic cost at end ofyear 724,328 724,328

13

Boots Benevolent Fund Notes to the financial statements (continued) for the year ended 31 August 2021

9. Debtors: amounts falling due within one year

9. Debtors: amounts falling due within one year
2021 2020
£ £
Loans to Boots employees - 6,061
Other debtors 3,310 6,915
Amounts due from Boots UK Limited 131,040 84,130
Accrued income **72,197 ** -
206,547 97,106

In the prior year Loans to Boots employees related to the outstanding balance on loans that had not been provided against. Other debtors relate to undistributed supermarket vouchers purchased by the Trust. Amounts due from Boots UK Limited are interest free and repayable on demand. Accrued income relates to income generated through fundraising activities that remained outstanding as at 31 August 2021.

10. Cash at bank and in hand

2021 2020
£ £
Deposit accounts
- COIF Charities Investment Fund 221,398 192,487
- Reserve account 100,316 81,733
321,714 274,220

11. Creditors: amounts falling due within one year

2021 2020
£ £
Amounts due toBoots UK Limited and associates - 11,692
- 11,692

Amounts due to Boots UK Limited are interest free and repayable on demand.

12. Restricted funds

The restricted Fund represents the amount of unclaimed monies owing to investors in the Boots Employees' Savings Fund which were transferred to the General Benevolent Fund when the Savings Fund was discontinued. This amount was transferred to the Fund on 31 March 1997 but is held in trust and, as such, is not available for distribution by the Fund.

Restricted Fund monies are held in the bank accounts operated by the Fund. Interest received from this account is treated as income of the Fund.

13. Analysis of net assets between funds

Fund balances at 31 August 2021 are represented by:

Fund balances at 31 August 2021 are represented by:
Restricted Unrestricted
funds funds Total
£ £ £
Investments - 1,016,321 1,016,321
Current assets 3,155 525,106 528,261
Currentliabilities - - -
Total net assets 3,155 1,541,427 1,544,582

The value of funds relating to unrealised gains is £65,234 (2020: £6,085).

Fund balances at 31 August 2020 are represented by:

Restricted Unrestricted
funds funds Total
£ £ £
Investments - 951,087 951,087
Current assets 3,155 368,171 371,326
Currentliabilities - (11,692) (11,692)
Total net assets 3,155 1,307,566 1,310,721

14

Boots Benevolent Fund Notes to the financial statements (continued) for the year ended 31 August 2021

14. Employee numbers and costs

The Fund has no employees (2020: none), and no Trustee has received any remuneration or reimbursement of expenses for their services to the Fund during the current or prior year.

15. Related parties

Boots Benevolent Fund is a wholly owned charitable company within the Walgreens Boots Alliance, Inc. Group. All companies within the Group are a related party to the Fund.

During the year, the Fund was donated services to the value of £59,508 (2020: £33,241) from a related company, Boots UK Limited (a wholly owned subsidiary within the Group). Income from certain donations is collected by Boots UK Limited on behalf of the Trust and available to the Trust on demand. The outstanding balance due from Boots UK Limited as at 31 August 2021 was £131,040 (31 August 2020: £84,130).

Amounts outstanding in relation to employee loans as at 31 August 2021 was £nil (31 August 2020: £6,061).

During the year, the Fund was donated services to the value of £9,641 (2020: £9,547) from a related company, Boots Management Services Limited (a wholly owned subsidiary within the Group). There were no outstanding balances between Boots Management Services Limited and the Trust as at 31 August 2021 (31 August 2020: £nil).

16. Commitments

At the balance sheet date, there are no grants which the Fund was committed to making that have not been provided for (2020: none).

17. Post balance sheet events

There have been no significant events since the balance sheet date which should be considered for a proper understanding of these financial statements.

18. Ultimate parent undertaking

The Fund has no share capital and is limited by guarantee of the members. At 31 August 2021 the Fund’s immediate parents are Alliance Boots Holdings Limited and Walgreens Boots Alliance Services Limited and its ultimate parent company and controlling party was Walgreens Boots Alliance, Inc. Walgreens Boots Alliance, Inc. is also the parent undertaking of the largest and smallest group in which the Company is consolidated. The consolidated financial statements of this group are available from the Walgreens Boots Alliance website at www.walgreensbootsalliance.com.

Walgreens Boots Alliance, Inc. is incorporated in the United States of America, and its principal and registered office address is 108 Wilmot Road, Deerfield, Illinois, 60015. The principal purpose of Walgreens Boots Alliance is to help people across the world lead healthier and happier lives, and the principal activity is retail.

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